Dentsu Group (Dentsu Group) Interest Coverage

: 4.57 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Dentsu Group's Operating Income for the three months ended in Dec. 2023 was $386 Mil. Dentsu Group's Interest Expense for the three months ended in Dec. 2023 was $-84 Mil. Dentsu Group's interest coverage for the quarter that ended in Dec. 2023 was 4.57. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Dentsu Group Inc interest coverage is 3.32, which is low.

The historical rank and industry rank for Dentsu Group's Interest Coverage or its related term are showing as below:

DNTUF' s Interest Coverage Range Over the Past 10 Years
Min: 1.84 Med: 4.41 Max: 12.86
Current: 3.32

DNTUF's Interest Coverage is ranked worse than
73.81% of 611 companies
in the Media - Diversified industry
Industry Median: 11.96 vs DNTUF: 3.32

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Dentsu Group Interest Coverage Historical Data

The historical data trend for Dentsu Group's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Dentsu Group Annual Data

Trend

Mar14

Mar15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

1.84

4.08

3.57

4.27

3.35

Dentsu Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																5.78	3.42	1.37	3.62	4.57

Competitive Comparison

For the Advertising Agencies subindustry, Dentsu Group's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Dentsu Group Interest Coverage Distribution

For the Media - Diversified industry and Communication Services sector, Dentsu Group's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Dentsu Group's Interest Coverage falls into.

Dentsu Group Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Dentsu Group's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Dentsu Group's Interest Expense was $-264 Mil. Its Operating Income was $885 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,162 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	884.885	/	-263.985
	=	3.35

Dentsu Group's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Dentsu Group's Interest Expense was $-84 Mil. Its Operating Income was $386 Mil. And its Long-Term Debt & Capital Lease Obligation was $3,162 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	385.751	/	-84.323
	=	4.57

The higher the ratio, the stronger the company's Financial Strength is.

Dentsu Group (OTCPK:DNTUF) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Dentsu Group Interest Coverage Related Terms

Thank you for viewing the detailed overview of Dentsu Group's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Dentsu Group (Dentsu Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Dentsu Group Inc (OTCPK:DNTUF) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

DNTUY:USA 4324:Japan DEN:Germany

Address

1-8-1 Higashi Shinbashi, Minato-ku, Tokyo, JPN, 105-7001

Website

https://www.dentsu.com

Dentsu Group Inc is a Japanese international advertising and public relations company that provides communication-related solutions and services such as management and business consulting. Dentsu is one of the world's largest advertising agencies. The company operates through its nine global network brands--Carat, Dentsu, Dentsu media, iProspect, Isobar, mcgarrybowen, MKTG, Posterscope and Vizeum--as well as through its specialist/multi-market brands. It is also active in the production and marketing of sports and entertainment content on a global scale. The company earns a majority of its revenue in Japan, followed by Europe and the Americas, while operating in over 100 countries around the world.